Deck 4: International Dimensions of Management

Question 1

__________ tends to discourage international business in parts of Africa.

A) Poverty
B) A continuing AIDS epidemic
C) A low economic growth rate in many areas
D) All of the options listed
E) None of the options listed

Answer 1

D

Question 2

Countries that have joined together to form the North American Free Trade Agreement (NAFTA) include:

A) Canada and Mexico.
B) Mexico and the United States.
C) Canada, the United States and Mexico.
D) Canada and the United States.
E) Canada, Cuba and Mexico.

Answer 2

C

Question 3

Which of the following are competitive implications for the European Union?

A) Free flow of workers, goods and services, and investments across national boundaries
B) Unfavourable trade and customs laws
C) Each EU country has access to a market slightly smaller than the United States.
D) All of the options listed
E) None of the options listed

Answer 3

A

Question 4

__________ links 14 countries of southern Africa in trade and economic development efforts.

A) South Africa Union (SAU)
B) South African Free Trade Association (SAFTA)
C) South Africa Economic Cooperative (SAEC)
D) South African Development Community (SADC)
E) South African Community (SAC)

Question 5

The Asia-Pacific Economic Cooperation (APEC) provides for Asia-Pacific economies to strengthen regional links and:

A) deepen economic relationships with China.
B) pursue common trade and economic goals.
C) contribute to Australia's security.
D) All of the options listed
E) None of the options listed

Question 6

Which of the following statements about the relationship between Australia and New Zealand is true?

A) The bilateral relationship between the two countries remains strong, and is evident from the progress on the continuing trans-Tasman trade and economic agenda.
B) The relationship between Australia and New Zealand is weakening economically.
C) The gap between Australia and New Zealand's business law regimes is widening.
D) The trans-Tasman Mutual Recognition Arrangement was disbanded in 2002.
E) There is an increase in compliance costs for companies operating in both countries.

Question 7

__________ is a region of ethnic turmoil and civil strife in countries struggling along the road to peace and economic development while simultaneously being a region rich with international business opportunities.

A) Western Europe
B) Africa
C) Northern Europe
D) Australia and New Zealand
E) North America

Question 8

Which one of the following statements does NOT accurately describe the concerns of the countries that negotiated the North American Free Trade Agreement?

A) Canadians worried about a vast influx of Mexican immigrants into Canada, thereby providing a cheap source of labour.
B) Canadian firms worried about domination by United States manufacturers.
C) American politicians were concerned about the potential loss of jobs to Mexico.
D) Mexico feared a further intrusion of US culture and values into Mexico.
E) Americans complained that Mexican businesses had lower social standards regarding the use of child labour and protection of the environment.

Question 9

Australia's strengthening cooperation with Asia contributes to:

A) Australia's security.
B) promotion of international interests.
C) increased trade collaboration.
D) All of the options listed
E) None of the options listed

Question 10

Important business and economic agreements among the EU countries include all the following EXCEPT:

A) opening government procurement to businesses from all member countries.
B) unifying financial regulations.
C) discouraging a common currency among members.
D) eliminating frontier controls and trade barriers.
E) creating uniform minimum technical product standards.

Question 11

Which of the following accurately describes member countries of the forum for Asia-Pacific Economic Cooperation (APEC)?

A) The member countries provide both high cost labour and a growing pool of highly skilled brainpower.
B) The member countries represent three quarters of the global marketplace.
C) All of the options listed
D) None of the options listed
E) APEC accounts for about 70 per cent of Australia's total trade with the rest of the world.

Question 12

Along with the EU, __________ is among Australia and New Zealand's largest trading partners and sources of foreign investment.

A) Canada
B) the US
C) Mexico
D) All of the options listed
E) None of the options listed

Question 13

Australia and New Zealand's interest in high quality US engagement in the Asia-Pacific region continues, especially the importance of good US relations with:

A) China.
B) Indonesia and the Republic of Korea.
C) Japan.
D) All of the options listed
E) None of the options listed

Question 14

__________ refers to the process of growing interdependence among resource supplies, product markets, and business competition on a worldwide basis.

A) International management
B) Global management
C) The multinational economy
D) Globalisation
E) Transnational interdependence

Question 15

The European Union is composed of 27 Western European countries that have:

A) formed a political alliance to overthrow communism.
B) decided to promote cultural exchanges.
C) created an international organisation to represent the rights and interests of workers.
D) signed a mutual defence treaty.
E) agreed to promote mutual economic growth by removing trade barriers.

Question 16

The __________ is the common currency of the European Union.

A) Zloty
B) euro
C) Gold Standard
D) EU Franc-Mark
E) international dollar

Question 17

The North American Free Trade Agreement has created a market of potential consumers larger than its rival, the:

A) European Union.
B) European International Association.
C) European Free Trade Organisation.
D) North American and European Association.
E) European Foreign Countries.

Question 18

The __________ is/are comprised of 27 countries linked together through favourable trade and customs laws to facilitate the free flow of workers, products and investments across national boundaries.

A) European foreign countries
B) European countries
C) European free trade organisations
D) European International Association
E) European Union

Question 19

Which of the following is NOT an expected benefit of a common European currency?

A) A common currency will have political risks.
B) A common currency will contribute to higher productivity.
C) A common currency will produce lower inflation rates.
D) A common currency will eliminate economic risks.
E) A common currency will help create steady growth.

Question 20

One of the controversies associated with NAFTA is the operation of manufacturing plants that are allowed to import materials, components and equipment duty-free. These firms are called:

A) maquiladoras.
B) free trade organisations.
C) canamericos.
D) government agencies.
E) privileged.

Question 21

When the government makes decisions that determine allocations of raw materials, set product output quotas, and regulate wages and prices, the nation is operating under:

A) a free-market economy.
B) conditions of free government control.
C) a central-planning economy.
D) a domestic economy.
E) poor government conditions.

Question 22

Africa is a continent with a growing economy that beckons international business because of its:

A) natural resources.
B) unstable economic development.
C) ethnic turmoil.
D) All of the options listed
E) None of the options listed

Question 23

Foreign companies operating in the Asia-Pacific:

A) must deal with special laws regarding occupational safety and health, equal employment opportunity and sexual harassment.
B) may encounter quite different laws than they are accustomed to in their home countries.
C) must deal with antitrust issues that prevent competitors from regularly communicating with one another.
D) All of the options listed
E) None of the options listed

Question 24

A free-market economy is one that:

A) allows the government to determine allocations of raw materials.
B) disperses national resources equally among the citizens of a nation.
C) operates under capitalism and laws of supply and demand.
D) disperses national resources equitably among the corporations in the nation.
E) allows the government to make all the major decisions.

Question 25

The Organisation for Economic Co-operation and Development (OECD) brings together representatives from _______ to discuss economic, trade and social policy concerns.

A) Pacific Rim countries
B) Canada, US and Mexico
C) North America and Britain
D) 30 developed, democratic countries that have open market economies
E) Japan, Indonesia and China

Question 26

__________ is the selling of state-owned enterprises into private ownership.

A) Governmental auction
B) Privatisation
C) Corporate welfare
D) Governmental subsidy
E) Foreign investment

Question 27

A __________ is an international business approach that typically grants access to unique manufacturing technology, a special patent or trademark rights.

A) licensing agreement
B) joint venture
C) management contract
D) wholly owned subsidiary
E) franchise

Question 28

Controversies emerge over rising prices, unemployment, business competition and the challenges of privatisation as:

A) central-planning economies change to free-market economies.
B) manufacturing-based economies change to knowledge-based economies.
C) a free-market economies change to central-planning economies.
D) global markets dominate transnational businesses.
E) globalisation increases competitive pressures on businesses of all sizes.

Question 29

Trade between the Canada, Mexico and United States is characterised by:

A) restricted flow of goods and services, workers and investments.
B) development of competitive banking barriers.
C) formulation of foreign economic controls.
D) free flow of goods and services, workers and investments.
E) limited flow of goods and services, workers and investments.

Question 30

In selecting joint venture partners in a foreign country, a company should do all of the following EXCEPT:

A) choose a partner with shared interests in meeting customer needs.
B) choose a partner that is a new entrant to your firm's line of business.
C) choose a partner with a strong local market for its own products.
D) choose a partner with future expansion possibilities.
E) choose a partner with good profit potential.

Question 31

The exporting of products involves:

A) acquiring foreign-made products and selling them in domestic markets.
B) contracting to provide managerial and technical service to a foreign concern.
C) making investments in a foreign operation.
D) selling locally made products in foreign markets.
E) making direct investments in start-up operations abroad.

Question 32

The reasons for engaging in international business include all of the following EXCEPT:

A) seeking to eliminate ethical concerns.
B) seeking access to financial resources.
C) seeking access to lower labour costs.
D) seeking profit potential.
E) seeking new markets to sell products.

Question 33

Common legal problems in international business involve all of the following EXCEPT:

A) environmental pollution restrictions.
B) incorporation practices and business ownership.
C) negotiating and implementing contracts with foreign parties.
D) protecting patents, trademarks and copyrights.
E) handling foreign exchange restrictions.

Question 34

Which of the following does NOT describe the characteristics of global managers?

A) Being informed about international developments
B) Focusing on domestic market demands
C) Being competent in working with persons from different cultures
D) Being aware of regional developments in a changing world
E) Being transnational in outlook

Question 35

A checklist for selecting joint venture partners in a foreign country should include which of the following?

A) Choose a foreign partner with activities that relate closely to your firm's major business.
B) Choose a foreign partner with a strong local workforce.
C) Choose a foreign partner with good profit potential and sound financial standing.
D) All of the options listed
E) None of the options listed

Question 36

Because educational systems vary from country to country, business leaders around the world are concerned about:

A) the absence of appropriate skills in the workforce.
B) actual or potential human resource deficits.
C) problems of illiteracy.
D) All of the options listed
E) None of the options listed

Question 37

Examples of successful collaborations between Australia/NZ and Latin America include:

A) access for cereals and meat.
B) supply of coal to Mexico's power industry.
C) a tariff exemption for wool.
D) All of the options listed
E) None of the options listed

Question 38

Political calls for tariffs and favourable treatment to help shelter domestic businesses from foreign competition is known as:

A) free trade.
B) restrictive trade.
C) maquiladora.
D) strategic economic bidding.
E) protectionism.

Question 39

The importing of products involves:

A) selling locally made products in foreign markets.
B) making investments in a foreign operation.
C) contracting to provide managerial and technical service to a foreign concern.
D) making direct investments in start-up operations abroad.
E) acquiring foreign-made products and selling them in domestic markets.

Question 40

____________ provides a business with the opportunity to take advantage of international wage gaps and the availability of skilled labour by dispersing more and more work to foreign locations.

A) Global sourcing
B) Licensing
C) Exporting
D) Importing
E) Direct investment

Question 41

All of the following are benefits to the host country of a multinational corporation EXCEPT:

A) technology transfer.
B) reduced tax base.
C) capital development.
D) increased employment opportunities.
E) development of local resources.

Question 42

__________ is a form of international business through which a company pays a fee for the rights to manufacture or sell another firm's products.

A) A multi-company operation
B) An incorporated business
C) A joint venture
D) A licensing agreement
E) A management contract

Question 43

Which of the following examples represent Hofstede's masculinity-femininity dimension?

A) Everyone should have equal rights versus only the ones in control are entitled to privilege
B) Willingness to take risks versus concern with security in life
C) Time is free versus time is money
D) Assertiveness versus concerns for feelings
E) Reliance on group decisions versus reliance on individual decisions

Question 44

Which of the following does NOT accurately characterise the conduct of international business?

A) Global sourcing, exporting/importing and licensing/franchising are market entry strategies for conducting international business.
B) When a business is just getting started internationally, direct investment strategies are the usual way to begin.
C) Market entry strategies involve the sale of goods or services to foreign markets but do not require major capital investments.
D) Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations.
E) Joint ventures and wholly owned subsidiaries are direct investment strategies for conducting international business.

Question 45

According to Fons Trompenaars, __________ is the degree to which a culture emphasises objectivity and reserved detachment in relationships or allows for more emotionality and expressed feelings.

A) specific versus diffuse
B) neutral versus affective
C) achievement versus prescription
D) individualism versus collectivism
E) universalism versus particularism

Question 46

__________ are MNCs that make use of the internet to conduct business worldwide on a borderless basis

A) Multinational borderless corporation
B) Transnational virtual corporations
C) Transnational borderless companies
D) Development corporations
E) Virtual borderless companies

Question 47

Businesses expand their operations to the international market for many reasons. Which of these is NOT a reason offered by your text?

A) To increase access to needed raw materials
B) To take advantage of decreased governmental control in host countries
C) To draw on the financial resources of many nations
D) To have access to lower labour costs
E) To expand profit potential

Question 48

The extent of ethical concerns for MNCs cover concerns and practices EXCEPT:

A) only the highly industrialised nations need to be worried about industrial pollution of cities, hazardous waste disposal, and depletion of natural resources.
B) ISO 14000 provides guidelines for responsible environmental policies.
C) the use of child labour for work otherwise done by adults.
D) sweatshops which employ workers for very low wages, for long hours and in poor working conditions.
E) the world's citizenry increasingly expects global corporations to respect the natural environment and to pursue sustainable industrial practices.

Question 49

Multinational corporations have several complaints about host countries. Which of the following is NOT one of these complaints?

A) Pressure to buy raw materials at inflated prices
B) Pressure to pay high prices for services
C) Failure to uphold contracts
D) Pressure to keep local wage rates low
E) Foreign exchange restrictions

Question 50

Which of the following are mutual benefits for a multinational corporation and a host country?

A) Growth
B) Income
C) Learning
D) All of the options listed
E) None of the options listed

Question 51

The World Trade Organization (WTO):

A) has a mechanism for monitoring international trade.
B) resolves disputes among countries.
C) is organised around an international accord.
D) All of the options listed
E) None of the options listed

Question 52

A company that operates worldwide without being identified with one national home is known as a(n):

A) international corporation.
B) multinational corporation.
C) transnational corporation.
D) antidomestic corporation.
E) supernational corporation.

Question 53

A form of licensing in which the licensee buys the complete support package needed to open the business is a:

A) licensing agreement.
B) management contract.
C) wholly owned subsidiary.
D) joint-venture.
E) franchise.

Question 54

Joint ventures are __________ that help participants to gain things through cooperation that otherwise would be difficult to achieve independently.

A) foreign partnering contracts
B) strategic alliances
C) import/export arrangements
D) licensing agreements
E) management contracts

Question 55

Multinational corporations are often criticised at home for:

A) diverting labour-intensive jobs from the domestic labour force to foreign labour markets.
B) diverting capital investments away from the domestic market.
C) allowing or encouraging corrupt practices in their foreign subsidiaries.
D) All of the options listed
E) None of the options listed

Question 56

Conducting for-profit transactions of goods and services across national boundaries is the foundation of:

A) trans-border entrepreneurship.
B) international business.
C) multinational management.
D) cross-cultural intrapreneurship.
E) cross-national management.

Question 57

As a cultural variable, religion may:

A) provide ethical and moral guidance for personal and institutional activities.
B) require business people to be sensitive to the rituals, holy days and other expectations associated with the host nation's religious tradition(s).
C) affect business practices regarding dress, food and interpersonal behaviour.
D) All of the options listed
E) None of the options listed

Question 58

Which of the following statements about corruption is NOT true?

A) Commonwealth heads of government have a policy of 'zero tolerance' of corruption.
B) Critics believe that anti-corruption policies fail to recognise the reality of business in foreign nations.
C) The Council of Europe and the EU have finalised comprehensive anti-corruption policies.
D) Corruption involves illegal practices to further one's business practices.
E) Companies adhering to anti-corruption policies are at a competitive advantage.

Question 59

Which of the following forms of international business transactions represent investments in a local operation that is completely owned and controlled by a foreign firm?

A) Licensing agreements
B) A multinational corporation
C) Management contracts
D) Wholly owned subsidiaries
E) Joint ventures

Question 60

The best definition of a multinational corporation is:

A) any joint venture with a foreign firm.
B) a business that has extensive international operations in more than one foreign country.
C) any import/export firm.
D) any firm that does business abroad.
E) a business firm that has extensive operations in one foreign country.

Question 61

According to Fons Trompenaars, __________ is the degree to which a culture emphasises rules and consistency in relationships or accepts flexibility and the bending of rules to fit circumstances.

A) universalism versus particularism
B) neutral versus affective
C) specific versus diffuse
D) achievement versus prescription
E) individualism versus collectivism

Question 62

The __________ refers to a culture that views time as linear with an interrelated past, present and future.

A) polychronic view
B) analytical view of time
C) synchronic view
D) sequential view
E) time conscience view

Question 63

Which of the following is a true statement about the role of contracts in different cultures?

A) Written contracts are viewed as a starting point in low-context cultures.
B) In China a contract is viewed as a final and binding agreement.
C) Contracts tend to be viewed as binding agreements in high-context cultures.
D) In low-context cultures, written contracts continue to emerge and are modified as the parties work together.
E) Cultures vary in their use of contracts and agreements.

Question 64

According to Fons Trompenaars, __________ is the degree to which a culture emphasises individual freedoms and responsibilities in relationships or focuses more on group interests and openness.

A) neutral versus affective
B) universalism versus particularism
C) individualism versus collectivism
D) specific versus diffuse
E) achievement versus prescription

Question 65

In __________, people tend to do one thing at a time.

A) ethical cultures
B) monochronic cultures
C) time dependent cultures
D) polychronic cultures
E) sensitive cultures

Question 66

In __________, time is used to accomplish many things at once.

A) ethical cultures
B) monochronic cultures
C) time dependent cultures
D) polychronic cultures
E) sensitive cultures

Question 67

__________ cultures are those in which much communication takes place through nonverbal and situational cues in addition to the written or spoken word.

A) Corporate
B) Organisational
C) High-context
D) Low-context
E) Middle-context

Question 68

Which of the following examples represent Hofstede's individualism-collectivism dimension?

A) All should have equal rights versus only the ones in control are entitled to privilege
B) Willingness to take risks versus concern with security in life
C) Interdependence versus independence
D) Time is free versus time is money
E) Reliance on individual self-interest versus the collective values of the group

Question 69

The __________ refers to a culture that views time as a continuous and passing series of events.

A) sequential view
B) synchronic view
C) polychronic view
D) appreciation for time view
E) time conscience view

Question 70

Hofstede's cultural framework helps identify useful managerial implications of cultural differences, including all of the following EXCEPT:

A) in highly individualistic societies, workers are likely to emphasise self-interests over group loyalty.
B) in long-term cultures, business strategies are oriented toward the long term.
C) workers from high power distance cultures can be expected to respect people in authority.
D) in high uncertainty avoidance cultures, employment practices that increase job security are likely to be used.
E) in more feminine societies, the workplace displays more rigid gender stereotypes.

Question 71

Which sequence accurately describes the stages that a person goes through in adjusting to a new culture?

A) The honeymoon, confusion, irritation/anger, small victories and reality
B) Confusion, small victories, the honeymoon, irritation/anger and reality
C) Small victories, the honeymoon, reality, irritation/anger and confusion
D) Confusion, irritation/anger, reality, small victories and the honeymoon
E) The honeymoon, small victories, reality, confusion and irritation/anger

Question 72

Geert Hofstede has developed a framework consisting of five dimensions for understanding the management implications of broad differences in national cultures. Which of the following accurately identifies these five dimensions?

A) Political distance, uncertainty avoidance, utilitarianism-collectivism, masculinity-femininity and time orientation
B) Power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity and time orientation
C) Location, certainty avoidance, individualism-collectivism, masculinity-femininity and religious tradition
D) Power distance, certainty avoidance, individualism-utilitarianism, masculinity-femininity and religious tradition
E) Power distance, uncertainty avoidance, individualism-collectivism, totalitarianism-decentralisation and economic opportunities

Question 73

A shared set of beliefs, values and patterns of behaviour common to a group of people is referred to as:

A) the economic system.
B) the legal system.
C) national style.
D) group character.
E) culture.

Question 74

Which of the following examples represent Hofstede's power distance dimension?

A) Everybody should have equal rights versus the ones who are in control are entitled to privilege.
B) Willingness to take risks versus concern with security in life.
C) Reliance on group decisions versus reliance on individual decisions.
D) Interdependence versus independence.
E) Time is free versus time is money.

Question 75

According to Fons Trompenaars, __________ is the degree to which a culture emphasises focused and in-depth relationships or broader and more superficial ones.

A) individualism versus collectivism
B) universalism versus particularism
C) neutral versus affective
D) specific versus diffuse
E) achievement versus prescription

Question 76

Which of the following statements provides an incorrect description of the role of interpersonal space in culture?

A) Australians and New Zealanders prefer close interpersonal space in interpersonal communications.
B) Americans tend to value large and private office space.
C) Interpersonal space is a silent language of culture.
D) Arabs prefer closer interpersonal space in terms of communication.
E) In Japan, executive offices are likely to be shared even in major corporations.

Question 77

__________ is the study of how management practices systematically differ among countries and/or cultures.

A) International management
B) Comparative management
C) Theory Z
D) Political-risk analysis
E) International business

Question 78

Trompenaars recognises that cultures vary in their approach to the environment. In a(n) __________ culture, people tend to view themselves as separate from nature.

A) self-motivating
B) distrusting
C) outer-directed
D) self-directed
E) inner-directed

Question 79

The global manager is a person who is:

A) comfortable with cultural diversity.
B) quick to find opportunities in unfamiliar settings.
C) able to utilise economic, social, technological and other forces for the benefit of the organisation.
D) All of the options listed
E) None of the options listed

Question 80

Fons Trompenaars' framework for identifying systematic cultural differences focuses on:

A) the way relationships are handled among people.
B) attitudes toward time.
C) attitudes toward the environment.
D) All of the options listed
E) None of the options listed